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Non-Traded BDC Announces New $400 Million Senior Secured Loan and Increased Credit Facility

Corporate Capital Trust announced last week that it closed a new five-year senior secured-term loan for $400 million. The non-traded BDC, which invests in the debt of privately owned American companies, is externally managed by its sponsor, CNL, and global investment firm, KKR.

The lead arranger and administrative agent for the loan was JP Morgan Chase Bank, N.A. Joint book runners and co-syndication agents on the loan also include,: J.P. Morgan Securities LLC, Mizuho Bank, Ltd., HSBC Securities (USA) Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Bank PLC, and Greensledge Capital Markets LLC.

The loan was issued with a 0.5% original issue discount and bears an interest rate of LIBOR plus 3.25 percent, with a LIBOR floor of 0.75 percent. Corporate Capital Trust plans to use the proceeds of the loan to reduce the outstanding balances on its various revolving credit facilities and to fund new investments in portfolio companies.

Additionally, Corporate Capital Trust has increased the capacity of its senior secured credit facility from $600 million to $900 million. The committed capacity is currently $490 million, representing lending commitments from 16 commercial banks.

“We are happy to be adding this new senior secured term loan as well as increasing the accordion loan,” commented Andy Hyltin, CEO of Corporate Capital Trust. He continued, “The five-year term loan extends the maturity profile of our outstanding debt and allows greater flexibility and access to capital so we are better able to take advantage of current and future investment opportunities, while maintaining appropriate leverage on the company’s investment portfolio.”